The U.S. housing finance landscape may be on the verge of a significant shift as Fannie Mae and Freddie Mac have been directed to evaluate cryptocurrency holdings as part of mortgage qualification criteria. William Pulte, director of the Federal Housing Finance Agency (FHFA), issued a formal order requiring the two government-sponsored enterprises (GSEs) to prepare proposals on how digital assets can be factored into borrowers’ financial reserves when assessing single-family home loans.
This directive marks a pivotal moment in the integration of cryptocurrency into mainstream financial systems—particularly within one of the most traditional sectors: real estate financing.
A Step Toward Financial Inclusion and Modernization
Under the new mandate, Fannie Mae and Freddie Mac must explore ways to include crypto assets in mortgage underwriting without requiring conversion to U.S. dollars. This means that eligible borrowers could potentially use their Bitcoin, Ethereum, or other qualifying digital holdings as part of their reserve assets—just like stocks, bonds, or savings accounts.
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However, not all crypto holdings will qualify. The FHFA stipulates that only cryptocurrencies “evidenced and stored on a U.S.-regulated centralized exchange subject to all applicable laws” can be considered. This restriction ensures compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations while minimizing risk exposure from volatile or untraceable assets.
The move reflects a broader recognition that digital assets are no longer niche investments but a growing component of household wealth. As more Americans adopt cryptocurrency, excluding it from traditional lending assessments risks disqualifying otherwise creditworthy buyers.
Why This Matters for Homebuyers
For years, prospective homeowners with substantial crypto portfolios faced a difficult choice: sell their digital assets at potentially inopportune times—triggering capital gains taxes and missing out on future appreciation—or exclude them entirely from loan applications.
Now, with the possibility of counting crypto toward reserves, many more individuals may qualify for mortgages without liquidating their holdings.
“This is a big win for advocates of cryptocurrencies who want crypto to be treated the same way as other assets are,” said Daryl Fairweather, chief economist at Redfin.
Currently, investment portfolios such as stocks and mutual funds are accepted as reserve assets, though lenders often apply a discount rate to account for market volatility. The same principle is expected to apply to crypto: while Bitcoin might count at 80–90% of its value due to price swings, highly speculative altcoins may face steeper discounts or exclusion.
Fairweather emphasized that proper risk adjustment is key:
“As long as lenders are appropriately discounting crypto based on volatility, it's fine that crypto investments count toward reserves.”
Expanding Access to Homeownership
The policy shift aims to modernize credit evaluation models and expand access to homeownership. By acknowledging crypto as a legitimate asset class, the FHFA hopes to bring more aspiring buyers into the market—especially younger, tech-savvy generations who hold significant wealth in digital form.
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Danielle Hale, chief economist at Realtor.com, noted that this change could remove a major barrier:
“If Fannie and Freddie are going to accept cryptocurrency as collateral, that's a strong incentive for banks to shift their practices. Because people who might otherwise have to sell cryptocurrency to qualify — and maybe that's a deal-breaker for them now — under this new policy, they can qualify. It sort of expands the potential pool of eligible buyers.”
With nearly half of the $12 trillion U.S. mortgage market backed by Fannie Mae and Freddie Mac, any change in their underwriting guidelines has far-reaching implications for lenders and consumers alike.
Addressing Market Challenges
The U.S. housing market has struggled since 2022, when rising interest rates cooled demand after a pandemic-driven boom. Home sales reached their lowest level in nearly three decades in 2023, and buyer activity remains subdued in 2025 due to high mortgage rates and elevated home prices.
According to Redfin analysis, as of April 2025, there were nearly 34% more home sellers than buyers actively shopping—a clear sign of imbalance in supply and demand.
By broadening the definition of acceptable reserves, the FHFA hopes to stimulate demand by enabling more qualified buyers to enter the market. Even a modest increase in buyer eligibility could help absorb excess inventory and stabilize regional markets.
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Frequently Asked Questions (FAQ)
Q: Can I currently use my Bitcoin to get a mortgage?
A: Not yet widely—but this new directive sets the stage for Fannie Mae and Freddie Mac to begin accepting crypto as part of reserve evaluations. Lenders will need time to implement updated guidelines.
Q: Do I need to sell my cryptocurrency to qualify for a home loan?
A: Under current practices, most banks require conversion to cash. However, once the new policy is implemented, borrowers may be able to retain their crypto while still using it to demonstrate financial stability.
Q: Which cryptocurrencies will count toward mortgage reserves?
A: Only those held on U.S.-regulated centralized exchanges (e.g., Coinbase, Kraken) and fully compliant with federal regulations will qualify. Decentralized or offshore-held assets are unlikely to be accepted.
Q: How will lenders value my crypto holdings?
A: Similar to volatile stocks, crypto assets will likely be discounted—perhaps 10–30% depending on stability—to account for price fluctuations during the loan assessment period.
Q: Will this policy lower mortgage rates?
A: Not directly. However, by increasing borrower eligibility, it may boost competition among lenders and indirectly support more favorable loan terms over time.
Q: When will these changes take effect?
A: Fannie Mae and Freddie Mac must submit proposals “as soon as reasonably practical.” Implementation could begin within 6–12 months, pending review and approval.
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Looking Ahead
While still in its early stages, this policy signals a major step toward treating cryptocurrency as a mature financial asset. For the first time, a federal housing regulator has formally recognized that digital wealth should not be ignored in credit decisions.
As Fannie Mae and Freddie Mac develop their proposals, industry stakeholders—from banks to realtors—will watch closely. The outcome could redefine what it means to be “financially qualified” in the 21st-century housing market.
With younger generations holding more wealth in digital form than ever before, integrating crypto into mainstream finance isn’t just innovative—it’s necessary.